M III Acquisition Corp. (MIII) has entered into a definitive agreement and plan of merger with IEA Energy Services LLC, an engineering, procurement and construction (EPC) company in the renewable energy sector.
MIII will be renamed Infrastructure and Energy Alternatives Inc. (IEA) upon completion of the merger. IEA will hold all of the existing renewable energy EPC businesses of Infrastructure and Energy Alternatives LLC, including the Infrastructure and Energy Alternatives family of companies, led by White Construction Inc. and IEA Renewable Energy Inc. The company’s existing management team, led by J.P. Roehm, will serve as the continuing management team for IEA, and IEA’s headquarters will remain in Indianapolis. Funds managed by the power opportunities group of Oaktree Capital Management LP and the IEA management team (the existing owners) will hold a significant ownership interest in IEA following the merger.
The company was formed by Oaktree in 2011 in connection with its acquisition of White Construction, an EPC firm specializing in utility-scale wind farm construction. Through the construction of approximately 200 projects, the IEA businesses have erected more than 7,200 wind turbines, generating more than 14 GW of electricity.
Following the merger, IEA also expects to further expand its market share in the construction of utility-scale solar projects. The company says its overall goal is to expand its core product offerings in wind and solar construction and broaden the range of services it offers to customers.
J.P. Roehm, who will continue as CEO of IEA, says, “Oaktree has been a terrific partner for IEA over the past six years, and we are excited to now add MIII as a partner going forward. As a current leader in the booming renewables industry, we expect that the opportunities for IEA and our customers will only increase as a public company.”
Under the terms of the agreement, the aggregate purchase price payable at the closing of the transaction will be $255 million (subject to certain adjustments). The transaction has been unanimously approved by the boards of directors of both IEA Energy Services LLC and MIII and remains subject to customary closing conditions, including regulatory approval and the approval of MIII’s stockholders.
